by State and local legislation could require this to happen, but the process of repaying the money owed could be extremely challenging for importers and retailers alike
WASHINGTON — The possibility of class action lawsuits and legislation requiring businesses to refund tariffs to consumers could have retailers soon asking for their share of the proceeds.
On Feb. 20, the Supreme Court ruled that the Trump administration overstepped its bounds in imposing and collecting tariffs under the International Emergency Economic Powers Act. Importers of record are now in the process of claiming refunds through a government portal that opened April 20. Refunds are expected to be issued within 60-90 days of the submission of required information.
How this plays out will determine whether and how quickly retailers seek to be reimbursed by wholesalers and manufacturers that passed along price increases to cover the tariffs.
Some retailers also have said they have passed along some of these increased costs to consumers and believe they ultimately will have to give that back, particularly if they wish to create good will in their local markets.
Cardi’s Furniture & Mattresses recently sent a letter to suppliers addressing the issue.
“We are writing to establish Cardi’s Furniture & Mattresses’ claim to any future refunds, credits, or interest related to tariffs previously applied to our purchases,” wrote Roland Cardi, president. “As you are likely aware, recent judicial and legislative developments (including the Tariff Refund Act of 2026) have initiated a process for the recovery of certain duties. Because these costs were factored into our pricing and invoices, we respectfully request a full pass-through of any recovered amounts attributable to our business.”
Cardi went on to note that businesses are facing local and state legislation that would mandate tariff rebates for consumers.
“We ask for your team’s cooperation in reimbursing us for previously paid tariffs to assist with the mandate to refund consumers,” he wrote.
However, the issue of refunding money to consumers is murky at best, given that only a portion of the tariffs were collected under IEEPA. Other tariffs were collected and continue to be collected under Section 232 based on the perceived threat certain imports pose to national security. The Supreme Court decision does not impact those tariffs, which also have been applied to imported steel and aluminum as well as imported upholstery.
In order to return money owed to consumers, businesses would have to first determine what costs they passed along to retailers based on IEEPA tariffs versus the Section 232 tariffs. Retailers would have to do the same, in effect reviewing almost every sale made of imported product that had some form of tariffs applied, whether it be on finished product or on materials such as steel and aluminum that are included in components ranging from motion seating mechanisms to the frames of outdoor upholstery or metal beds, for example.
Thus, the issue of refunds adds a layer of procedural complexity to pricing decisions made many months ago. The process of collecting these refunds for importers of record is an important first step. But how to repay money owed to retailers and consumers could take many more months.
And regardless of which side of the political aisle you are on, it’s a huge and daunting task that simply makes doing business much more difficult than anyone could have imagined. But the industry has faced perhaps bigger challenges and will undoubtedly show its resilience once again as it strives to remain focused on its core mission of helping furnish peoples’ homes now and in the future.
